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Leverage

Leverage: what America cannot quickly replace

Deterrence needs teeth — every export lever paired with a signed alternative buyer, and the proceeds fund the exit.

CommodityUS dependenceUS substitution timeInstrumentAlternative buyersProceeds fund

The export-levy framework: incidence matters — levies the US buyer pays

C$6–16B/yr
central levy envelope (C$13–24B upper bound) — incidence measured, not assumed
US$5/bbl
durable crude levy setting (US$10 as spike-only) — strengthening as tidewater capacity grows
C$2–4B/yr
central Tariff Adjustment & Retraining Fund (C$3–6B at the upper envelope)
90 days
automatic full sunset after US tariff repeal — built to be dismantled

Levy-eligible: passes all three tests

ProductLevyRevenue (C$B/yr)Why the US pays, not CanadaProducer protection

Deliberately excluded — and why

ProductWhy a levy would backfire

The legal framework, in brief

See the Legal Annex for the full instrument-by-instrument legal basis, international-law status, and what still needs independent counsel review.

Revenue recycling:

ShareDestinationWhy

Choosing the instrument: levy vs quota vs tariff

Who actually pays — the incidence picture

Counter-tariff on US imports (current plan) US exporter Canadianconsumer Tariff paid HERE by Canadians — higher shelf prices at home Export levy + import quota (this plan) Canadianproducer (whole) US refiner /consumer Levy paid HERE — by Americans C$13–24B/yr; quotas swap suppliers at unchanged Canadian prices Same signal to Washington. Opposite incidence at home.
InstrumentUse whenWho paysSpecific examplesWhat it replaces

Risks, stated plainly